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Current Return

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Current Return
The return on a bond from the coupon expressed as a percentage of the bond's market value. That is, the current return is based on what a bondholder makes from coupon payments in a given year. It is usually not expressed in the same way as the coupon rate, which is expressed as a percentage of the bond's face value. For example, if a bond's face value is $100 and it pays a 1% coupon rate per year, the annual return is $1. However, if the bond is trading for $80, the current return is expressed as $1 / $80, or 1.25%. The current return is also called the current yield.

Current return. Current return, also called current yield, is the amount of interest you earn on a bond in any given year, expressed as a percent of the current market price.

The current return will, in most cases, not be the same as the coupon rate, or the interest rate the bond pays calculated as a percentage of its par value.

For example, if the par, or face value, of a bond is $1,000 and the coupon rate is 5%, then the interest payments, or annual income, from the bond is $50 per year. If, however, the bond is trading at $900, then that $50 annual income is actually a current return of 5.6%.

The current return does not take capital gains or losses into account, so it is not a reflection of the total return on your bond investment.



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He is also on course to reach his career target of averaging above 30 with the bat and below it with the ball - his current returns are 30.
Current returns on good investments opportunities were around 10 per cent annually with the possibility of an 18pc yield over the next five to six years.
Current returns on good investments opportunities were around 10 per cent annually with the possibility of an 18 per cent yield over the next five to six years.
 
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